JP Morgan told to explain India outsourcing plan

[OhioChick]

Source: Economic Times India

20 Mar 2009, 0201 hrs IST, ET Bureau

NEW DELHI: About 43 members of the US Congress have written to financial services firm JP Morgan Chase, asking it to explain its plans to increase outsourcing to India.

ET had earlier reported that JP Morgan plans to increase outsourcing to India by 25%. The financial services firm has been the recipient of $25-billion from the US government’s Troubled Assets Relief Program (TARP).

In a letter addressed to JP Morgan Chase CEO Jamie Dimon, the Congress members asked: “How should these American workers, many of them your consumers, be expected to have hope for a better future when the very companies they contributed to through TARP outsource the jobs they desperately need?” A JP Morgan Chase spokesperson in India refused to comment on the matter.

There has been furore over outsourcing by American financial institutions that have received billions of government funds under its bailout package. For such firms, outsourcing, and offshoring to low-cost destinations such as India in particular, makes greater sense than ever before, as they look to cut costs.

“Most banks are looking to offshore more to India. With anti-outsourcing noises being made in the US, everyone is watching as to whether and how they will translate into action,” said sourcing advisory firm Everest principal Nikhil Rajpal.

Senators Chuck Grassley and Bernie Sanders recently introduced a legislation in the US Senate to prevent recipients of the government bailouts from hiring H1-B visa holders for one year. The Senate later cleared a watered-down version that allowed such companies to hire H1-B workers, but first prove they had made efforts to hire American workers.


Read more: http://economictimes.indiatimes.com/News/News-By-Industry/Jobs/JP-Morgan-told-to-explain-India-outsourcing-plan/articleshow/4289770.cms

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List of the 43 members of Congress that wrote to JP Morgan Chase:

Rep. Mary Jo Kilroy Rep. Barney Frank

Rep. Loretta Sanchez Rep. Charles Wilson

Rep. Marcy Kaptur Rep. Betty Sutton

Rep. Tomas Perriello Rep. Joe Baca

Rep. Diane Watson Rep. Peter Welch

Rep. Charles Gonzalez Rep. Lynn Woolsey

Rep. Al Green Rep. Luis Gutierrez

Rep. Paul Hodes Rep. Tim Ryan

Rep. Timothy Bishop Rep. Paul Hodes

Rep. Stephen Lynch Rep. Eric Massa

Rep. Robert Brady Rep. Chellie Pingree

Rep. Bobby Rush Rep. John Oliver

Rep. Chaka Fattah Rep. Dennis Kucinich

Rep. Rubén Hinojosa Rep. James McGovern

Rep. Elijah Cummings Rep. Michael Michaud

Rep. Emanuel Cleaver Rep. Linda Sánchez

Rep. Christopher Carney Rep. Steven Rothman

Rep. Raúl Grijalva Rep. Phil Hare

Rep. Fortney Peter Stark Rep. Michael Capuano

Rep. Daniel Maffei Rep. Harry Teague

Rep. Paul Tonko Rep. John Dingell

:applause: